In December 2014, craft beer enthusiasts in the Capitol City let out a growl when they discovered they would no longer be able to fill growlers from the Charleston Brewing Company at Black Sheet Burrito and Brews due to antiquated alcohol licensing statutes.
Fast forward six weeks and three pieces of legislation have been introduced in the West Virginia Senate that attempt to address this situation as well as several other issues craft brewers in West Virginia believe impede their ability to grow.
The most comprehensive piece of legislation appears to be SB297 introduced on January 23, 2015 by Senators Palumbo (D Kanawha) and Walters (R Kanawha). SB297 would add a new “Class G” license endorsement allowing preexisting Class A, B, or private club retail license holders to sell growlers to consumers. Additionally it removes restrictions that previously limited the sale of craft been in growlers on brewpub premises to no more than two growlers, and instead allows brewpubs to offer beer for retail sale. Most significantly it adds a new code section, 11-16-6b, that specifically sets forth the conditions under which retailers holding the new Class G license endorsement and brewpubs may sell growlers. SB 297 does not appear to allow brewers (as opposed to brewpubs) to engage in retail sales of craft beer.
Introduced on January 21st by Senators Cold and Kessler, SB 273 appears to address this gap. It amends W.Va. Code §11-16-6, which prohibits overlap in license categories such that there is no connection allowed between retailers, distributors, or brewers, to permit a brewer to sell for retail sale up to four growlers per customer per day. And, it changes the license fee structure for resident brewers from and flat fee to a graduated fee based on production and removes bond requirements for brewpub licenses.
Finally, SB 209 introduced on January 23rd by Senator Williams and co-sponsored by Senators Beach, Blair, Kirkendoll, Stollings, Sypolt, Palumbo, and Miller would also allow a brewpub or brewer to sell up to two growlers per day at a brewery located in West Virginia. Like SB 273, it also modifies licensing fees applicable to brewers to set a graduated fee structure based on production and lowers license fees for brewpubs.
All three bills have been referred to the Senate Economic Development Committee and then the Senate Judiciary Committee and while there are certainly differences to be ironed out between the three bills – primarily pertaining to what the licensing fees will be and the amount of beer breweries will be able to offer for retail sale – it appears that collectively these three pieces of legislation address to some extent the main concerns raised by brewers and craft beer enthusiasts with regard to the existing regulatory scheme.
About the authors: Rich Boyle is also a member in Kay Casto & Chaney’s Charleston Office. He is a former West Virginia State Tax Commissioner and State Lottery Director and represents clients in State and Local Taxation and Gaming Law as well as in regulatory matters before the Alcohol Beverage Control Commission. Jack Hoblitzell is a member in Kay Casto & Chaney’s Charleston Office who enjoys consuming good beers.
Richard Boyle and Jack Hoblitzell